Human Resource Management of Gateway Engineering Limited - Case Study Example

Human Resource Management Name: Roll No. Subject: Teacher: November 13, 2007 University: Background of the Company Derek cresswell formed a company ‘Gateway Engineering Limited’ that is present in the business scenario for the last 47 years. Later on, a multi-national company purchased the right of ownership. Directors have acquired the services of a new CEO with the determination of placement of focus on customer. Staff strength at present is 1400. Fifteen years earlier, there were 3500 people on the payroll of company. There are four divisions in the company located at different places in North East of England. A diversification of services is present with company targeting both business as well as public customers. Problem Identification The strength of company, as compared to fifteen years ago, is less than half. The company in the past had developed particular techniques along-with effective management systems. These attributes were attractive enough for the customers who were in need to ‘contract out, some fraction of their sources of business. Resultantly company had developed a broad customer base due to the diversification in their client services. They offered service for engineering, construction and other industries. The dynamics of business necessitated the use of developed IT systems. This proved to be a crucial set back for the company. In addition, the operation costs also rose and profits started declining. Management of the company made strong efforts to decrease the outflow of employees that were not fruitful at the day end. Company in order to resist against redundancies, offered a part of their services even to the general public, that included contract purchase of gas, electricity and oil, etc. Almost all of the restructuring efforts were in vain and company shed its staff. For the past year, company has witnessed a huge turnover of the staff and having trouble to hire new employees. This problem persists even today. Present scenario is that company has succeeded in winning a new contract that requires an additional hiring of around 850 people in the coming two years. The problem of high turnover and hindrances faced in finding new employees certainly presents one of the major issues, as it has to hire around 850. People Management A process required to create a working environment that is essential for an organization. It sets such environment in which the staff can perform their duties to the best of their capabilities and abilities. People management is in fact a full-fledge system. It starts when there is a need of a job and does not end until the employee leaves the firm. Human Resource Management Cycle- Its role There are specific components of human resource management cycle. In order to define and critically analyze the complexities of Management cycle, we discuss the different aspects. There are resources available to every organization, especially for hiring purposes. There are two main categories of resources, particularly for the hiring of people. An organization can utilize internal as well as external resources. Employees that are currently serving in the organization forms an important part of job pool. The vacancies correspond to promotions or transfers. Current employees can be useful for making referrals also.-an effective resource in the hiring of a new employee. Any good performer may refer an appropriate person for the induction as employee in organization. It is in the nature of people that they develop and indulge in relationships with people who have almost same habits. The cost factor also plays a major role in this source as the management without any cost contacts qualified persons. To discuss some of the external resources available to a firm, the most important and heavily used is Media Advertising. Organizations use print as well as electronic media to seek the appropriate candidate. Another inexpensive source available to organization is walk-ins. Applicants file their requests for job through walk-ins, whenever there is a need to fill a job the data collected from these applications is useful. There are public and private agencies that are involved in providing people for hiring. The public recruitment agencies charge for their service. High schools also provide an excellent resource for the jobs. Supply of candidate is of non-experienced employees. The term development is an important and integral part of the human resource management cycle. In most of the cases: a broader and continuous comprehensive set of different activities that also include the training and development programs. The aim of development activities is to acquire the services of a new employee up to the bottom line of performance level as set by the organization. Performance and rewards commence with the planning process. The organization and new employee, both holds expectations towards each other. It aims at pooling of resources. The goals set for individuals are continuously rationalized and reorganized. A specific program developed within an organization that shows a direction to the employee for recognition and acknowledgement of their services. Aims and objectives regularly designed and re-designed through out the year. This provides an assurance to employees for obtaining rewards on accomplishments of goals. Benefits and Recommendations We have identified the most significant problem in the people management and now discuss in detail the benefits of human resource and recommendations for change. Main aim for recommending these changes is to provide strategies through which the firm can attract the appropriate people to become employee of the firm. As there are four divisions in the organizations, changes recommended customized and tailored to the needs of all the four divisions. The first step is to obtain the clear and big picture of organization. Main forces of business highlighted. In the case of Gate way Engineering Limited, a set of diversified services with IT, the main profitable area. The implications of forces that drive the people side of the organization. Next step is the development of a Mission statement. Assurance made that negative reactions not offend any one. The assessment of current staff- what is their contribution? SWOT analysis of the organization is necessary. Focus on the strengths of organization. The weaknesses are also measured. Organization is to consider the capabilities and skills of the people in business. A thorough SWOT analysis enables the firm to involve in the extensive research programs. Study made under research highlights the variety of opportunities. Strong efforts are required to exploit the opportunities. Threats are analyzed and effective measures taken to convert them into opportunities. Analysis is made to judge the impact of SWOT to measure the performance of a business. Since the main profitable activities are in the sector of IT, so the impact of continuous change in technology should be analyzed. This analysis will provide a window of opportunity to the firm. It enables the firm to evaluate the capabilities of personnel department. Assess the current areas of operation of the department. Measure the service levels and the abilities of personnel staff. Conduct an elaborative analysis of human resources. Evaluate the culture of organization, the systems of human resources and the people. The current position of firm is considered and where they aim to reach. The gaps between reality and ambitions are bridged. The strategic measures already adopted are re-analyzed against SWOT. Set up the priorities of crucial issues of people. If the concerns of people are not addressed to full extent, then its impact is judged as pro-active approach. Create, provide details, and produce. These are the critical issues required for the managerial action. The manager should not imagine things or go for the apparent. It is a significant factor. People often opt for the known. They resist facing challenge about the things that have been done in the past. The firm needs to understand the importance of communications. If the process is implemented successfully than, the plans are transformed into wider objectives. There are different components of human resources, some of them are: training and development of staff; management and organization development; appraisal of performance and giving rewards; and communication. The development of plan that addresses the crucial factors is necessary. Target dates for accomplishment of aims are set and monitored. (R. Boreham.2002) Main aim to develop a strategy is the implementation and ultimately evaluation of the plans made and targets set. It is then the human resources benefits reaped. The implementation of these steps can bring the desired changes. It is ensured that the objectives and aim set are met. The reward system is implemented. Main aim of training and development of the staff is to provide generous career along with providing opportunities for development. Theories Relations of human and other human factors approaches were wrapped up in a wider behavior science. This movement was initiated in the mid of twentieth century. This period witnessed the emergence of some high class theories mostly aimed at the motivation element in human nature. Maslow’s Hierarchy of needs is in fact an insight into the individual behavior about needs. He concluded that human needs range from bottom to top with basic and biological needs at the bottom and self-actualization at the top level. In 1950s and 1960s, certain other theories also emerged. These theories were within the framework of human relations. Theory X and theory Y also became popular at that time, adopted, and practiced more vigorously even today. Most of the theorists of that time supported a soft approach in the attitude of management. Changes Recommended for the Recruitment and Selection of Staff Gateway Engineering Limited has managed to obtain a significant new contract. It requires the hiring of eight hundred and fifty new employees in the next two years. In the recent past company has witnessed a high turnover in staff. The problem becomes more complex when there is difficulty in attracting appropriate new employees. The company is divided into four divisions. Each division tackles the issue of Human Resource independently. Further, each of the division has its own operating systems. It is required to recommend the changes as to how all four divisions of organization recruits and selects its staff. Hiring an appropriate person for the job is one of the most significant and important decision, management has to make. Once an employee is hired, there has to be some concrete reason for the termination of his services. It could happen that particular employee is not working. It requires an immediate action. The longer tenure of an employee, the greater is probable price. The significance of employee selection requires the procedure to be explained step-by-step. It could bring a positive change in the approach of management. (O. Marjanovic. 2001) The management should make decision correctly and undoubtedly, what they require. The first and the foremost decision is whether a permanent or temporary employee is required by the organization. Need may become a catalyst for random selection of an employee. Sometimes exigencies for hiring a person are on higher side. One of the alternatives in such case is present for the firm and that is to hire a temporary employee. In such case, a written agreement can help to determine the terms and conditions for the fixed period of work. It will help in avoiding confusions and misconceptions, especially at the time when the services of employee is terminated at the end of defined fixed period. (R. Kowalski. 2001 However, if the performance of employee hired for a fixed period, is outstanding and up to the standards set for job, that particular employee may be offered a permanent job. The criteria required shared with the particular employee. There should be a general awareness among employees particularly the temporary employees, that hiring is made of the most appropriate person. Management and employee share benefits in case of temporary employment. The temporary employee has the window of opportunity opened for learning with one foot placed in the door. Management may benefit by utilizing the tenure of temporary employee by evaluating the performance during the fixed period. Disadvantage is also obvious. In case of non-selection, employee is disappointed. The management should complete an entire analysis of the job. The description defined clearly and without any doubt. A candidate judged as capable enough: the opportunity then provided. Successful selection of employee depends on a comprehensible understanding of the requirements of job. The tool used for analyzing the job is the identification of job description and relevant responsibilities attached. Job Descriptions and other Requirements A set pattern of job analysis timetable is prepared. It contains a detailed and written job description and its analysis. Another tool used is the job specification, which combines qualifications of employee identified while observing the process of job analysis and then highlights them in terms of abilities, capabilities and skills of employee. The selection of employee requirements is important to stress on the possession of skills and abilities not learned during service. Starting from job analysis and then defining job specification, next step is to construct a job description. It provides the applicant an insight of the job details. The exact title used with correct and exact reflection of the job can also prove helpful. A summary is prepared that usually contains a concise info on the job. Information other than the duties are also provided like vacation, other fringe benefits etc. Job responsibility is in fact the list of duties that mostly begins with one of the most important duty. Relationships: includes all information that is useful for reporting. The inside working conditions, with the intention to make the employee relax in job enhances the productivity. Good working conditions include suitable working hours. (B.S Firozabadi. 2001) The requirement of overtime is mentionable to the employees so they have a clear perception of overall working conditions. Salary and other benefits provide a proof to the employee regarding worth of job. It should be clear for every divisional head of the firm, the reasonable start of salary for an appropriate and qualified candidate. Starting salary term is an indication that employees have the clear understanding of their raise based on the starting salary. The employee is motivated if a starting salary term used in the service terms and conditions. The employee should be aware of other benefits, if any. The employer should weight the items contained in job specifications. It will help the employer assess skills and capabilities of the candidates. Every ability, the expertise and capability linked with the significance of job. To reach the appropriate weight for a particular aspect, comparisons management can make comparisons between capabilities of knowledge factors. (A.S. Abrahams.2002) Development of Strategies Next step is to determine the strategy that could help achieve better results. Management must make an assessment that how many candidates have applied on the efforts made for recruitment and the nature of job. The hiring authorities if have larger database of applicant, they have then more choice for selecting appropriate and most suitable candidate. Management have different resources through which, they can enhance their choice. It includes advertisements, referrals within the firm, newspapers, educational institutions etc. A marvelous resource is available in shape of potential applicants who are termed as walk ins. Most of these walk ins do not come, when there are job openings. However, the firm may develop a database from these candidates and later on, this information could be useful in making choice for an employee. The firm has the option to take a post office box. Candidates in such cases will send their applications to that particular post office box. (M.Salle.2003) There are other useful resources available to firm such as web sites and or telephone recording. If more information is provided, particularly at these two modes, the potential applicants have a better chance to make a wise and well thought decision. The usage of web site in particular provide detail information such as the history , operations, business details and other related material that could be supportive enough for making an insight into the firm. Plan the selection process: A well-planned selection process will result in obtaining more information about the abilities and weaknesses of candidate, which can provide better chance for the firm to make a better choice Selection of Right Tools Management can use different tools for evaluation. These tools include interviews, referral checks, letter for recommendations etc. Some of the tools are more important as compared to other. For the best use, management could make a combination of these tools. There is another option available for the firm is to test the skills of a person in one to two week trial period. This trial period in some of the cases proves to be too much useful. A trial period in combination with the tools mentioned above can be very useful for the right selection of an appropriate employee. (Klileman,L.S. 2000) The emotional aspects like motivation, punctuality and turnout can be adjudged during interview. The firm can also contact the previous employers in order to obtain dependable information. Management can design a Performa filled in by the person who is conducting interview. This Performa could contain the necessary information regarding skills, abilities and experience of the candidate. The interviewer puts his remarks in each of the Performa. The results received are useful in the evaluation of ability, motivation, interest, technical knowledge and other aspects related to job. (J.J. Lee.2002) Assign a Series to Restraints. There are a series of hindrances, which could cause restraints in the selection process of a candidate. Applicant is supposed to clear each of the hindrance. Every hindrance results in the abolition of employees from every stage. Management has to design these hindrances with utmost care. However, if the number of candidate is not too high in any category, then the creation of these hindrances is needless. As such, when selection equipments are not used as hindrances than the sequence is also not important. The hiring manager often uses biodata as the initial step for shunting out some applicants. Purpose of elimination is that some candidates may not meet the specific standards set for job. For example if management is looking for an employee with some specific number of years as experience in the relevant field, than initial scrutiny of biodata will help short listing of suitable candidates. Certain applications and bio data designed by the candidates are beautiful and attract the immediate attention. The lay out, neglecting the important information contained therein should not deceive hiring persons. A very little connection is found between a candidate in bio data and in the service. Management should conduct written exams to judge the technical expertise of a candidate. These written tests are successful hindrances, as they are not costly to manage than the interviews. The last two hindrances in the series are medical check ups and reference checking. Motive to create hurdles is to minimize the costs which is incurred on travel and other related matters. An option of telephonic interview is also a useful tool. It can also abolish the needless travel. To reduce further costs, written tests, if required, can be sent through mail. The test conducted, in such case, is administered under third party. Supply a Practical Job Preview Short listed candidates who understand the job description are entitled to receive enhanced information about job. The candidates can weigh the benefits of the job against their financial and social needs. Selected employees are in better position regarding the preview of entire job. Job preview in real sense initiates as soon as job along with description is announced. The prospective applicants search for the information and it is the duty of organization to provide all the necessary details such as job descriptions, and other necessary information. Interview can be a tool that is used by the firm to assess the abilities of candidate; it is pertinent to mention that it provides an opportunity for the firm to convey information about the firm to candidate. The management to provide information to the candidate can use interviews and written tests. (Buford.J. 2004) Communication with Candidates The first job of the hiring person is to reduce the doubts of candidates about job. A sort of pre-interview in this context may be arranged. The inter communication between the person conducting interview and the candidate can prove to be very effective. The short listing of candidates is not done at this stage. However, some of the candidates drop out on their own intentions. A bio data, which has been designed in a fine-looking and attractive manner, will help the management to check the skills and previous history of employment. This initial information can be verified later on. Bio data that reflects short intervals in service and huge gaps in employment are serious concerns. (M. Shanahan.2001) Management can use different tests to judge and analyze the qualifications and skills of candidates. Speed, oral and written tests are available to the management. These tests are helpful to determine and assess the ability, skill, attitude and other elements. Candidates should not remove the test material as well as scratch papers. After pre-interviews and tests, interviews are conducted. This is the real opportunity available to the management to measure the skills, abilities and other aspects in real sense. Interviews have significant importance for the middle and upper level jobs. The interview process is as critical as interpersonal connections to a job. For high ups, jobs in particular the series of interviews are conducted. The representative from stakeholders can be involved in the last interview so they have the first hand knowledge of the candidate selected. The concurrence of stakeholders is obligatory, as they should be apprised of the current developments and changes taking place in the organizations. An eminent human resource writer Helen Hardinf supports our point of view regarding the sequence of process and place special emphasis on pre-interviews to ease out the flow of communication between the employer and candidate. References A.S. Abrahams.(2002) Developing and Executing Electronic Commerce Applications with Occurrences. PhD thesis Cambridge University. B.S Firozabadi. (2001)Using Authority Certificates to Create Management Structures. 9th International Workshop. Buford.J. (2004). Management in Extension. Columbus, Ohio. Ohio State University Extension J.J. Lee.(2002) Integrating Service Level Agreements: Optimizing your OSS . Wiley, New York. Klileman,L.S. (2000). An Effective Job Posting System. Personnel Journal. M.Salle.(2003) Management by Contract. HP Labs Technical Report: pp.186 M. Shanahan.(2001) Solving the Frame Problem: A Mathematical Investigation of the Common Sense Law of Inertia, MIT Press. O. Marjanovic. (2001) Towards Formal Modelling of e-Contracts. Seattle, USA. R. Boreham.(2002) Contract Monitoring HP Labs Technical Report. R. Kowalski. (2001) A Logic-Based Calculus of Events. New Generation Computing. Read More